Tuesday 18 June 2013 07.37 EDT
First published on Tuesday 18 June 2013 07.37 EDT

Sir Dave Richards is to become chairman of Leicester City. Richards, the former Sheffield Wednesday chairman, will return to club football when he steps down from his role with the Premier League at the end of this month.

The 70-year-old will replace Vichai Srivaddhanaprabha at Leicester with Terry Robinson set to join him at the King Power Stadium to work alongside manager Nigel Pearson as director of football after leaving Stoke's academy.

It is understood the Foxes have made the appointments with financial fair play in mind. The forthcoming FFP rules, if broken, carry penalties such as a transfer embargo and last season Leicester's losses were in excess of £29m.

Srivaddhanaprabha has been preparing the club for what he hopes will soon be Premier League football and Richards has been brought in to ensure it is run on a cost-effective basis.

The Premier League chairman is a member of the FA's board, chairman of the FA's international committee, president of the European Professional Football Leagues organisation and chairman of Uefa'sprofessional football committee.

Robinson's brief will be to assist Pearson in squad building but he will specifically be asked to concentrate on lowering Leicester's wage bill by jettisoning a number of high earners signed by former manager Sven-Goran Eriksson.